Micron shares tumble 6% after China bans the US giant's microchips - and other semiconductor stocks are swinging too
- Micron shares fell 6% in premarket trading Monday after China banned its chips.
- Beijing ruled that the semiconductor giant's products posed a national security risk.
US semiconductor giant Micron Technology's stock price slumped in Monday's premarket after China banned its chips.
The stock fell 6% to trade at $64 shortly before 6 a.m. ET after Beijing's latest move, with its Frankfurt-listed shares slipping the same amount Monday morning.
Those losses came after China's cybersecurity regulator ordered companies dealing with critical information to stop buying Micron's products on Sunday.
The ban is the latest development in an ongoing clash between the US and China over technologies.
The Biden administration banned new equipment from China's Huawei and ZTE in November last year on the grounds they posed an "unacceptable risk" to cybersecurity.
Beijing hit back by launching a probe into Micron in April, setting the stage for Monday's full-blown ban.
The US Department of Commerce slammed China's policy as having "no basis in fact."
"This action, along with recent raids and targeting of other American firms, is inconsistent with the PRC's assertions that it is opening its markets and is committed to a transparent regulatory framework," the department said in a statement.
Other US-listed semiconductor stocks also traded lower after China announced its ban. Nvidia, Advanced Micro Devices, and Qualcomm all slipped by 1% or more. Meanwhile, several Chinese chipmakers rallied, with Ingenic up 3%.